ANNOUNCED TODAY-NEW FEDERAL SUPPORT FOR BUSINESS: Surrey Board of Trade

Mar 27th, 2020 at 3:58 pm

Government announcements are taking place daily. The Surrey Board of Trade is providing you with updates in one place for your convenience. For any specific questions, please email anita@businessinsurrey.com. See below for updates.

Deferral to June of GST/HST payments, as well as customs duties owing on imports, will generally apply to remittances that become due in March, April, and May. These amounts would normally have been due to the Canada Revenue Agency and the Canada Border Services Agency as early as the end of this month. This measure will take effect immediately, through existing authorities.

Wage Subsidy: 75 per cent wage subsidy (up from previous announcement of 10%) for qualifying businesses, for up to 3 months, retroactive to March 15, 2020. This will help businesses to keep and return workers to the payroll. More details on eligibility criteria will start with the impact of COVID-19 on sales, and will be shared before the end of the month.
Canada Revenue Agency is introducing a series of administrative measures to remove some of the burden on businesses experiencing financial hardship.

New Canada Emergency Business Account will provide funding to eligible financial institutions so that they can provide interest-free loans in the form of lines of credit of up to $40,000 to businesses with payrolls of less than $1 million. A quarter of this loan (up to $10,000) is eligible for complete forgiveness.

New Small and Medium-Sized Enterprise Loan and Guarantee program will operate as follows:
Export Development Canada will provide guarantees to financial institutions so that they can issue new operating credit and cash flow term loans of up to $6.25 million to small and medium-sized businesses. These loans will be 80 per cent guaranteed by Export Development Canada, to be repaid within one year.

Small and medium-sized businesses can also get support through a new Co-Lending Program that will bring the Business Development Bank of Canada together with financial institutions to co-lend term loans to these businesses for their operational cash flow requirements. Eligible businesses may obtain incremental credit amounts of up to $6.25 million through the program, which will be risk-shared at 80 per cent between the Business Development Bank of Canada and the financial institutions. Eligible financial institutions will conduct the underwriting and funding directly for customers.

PREVIOUS MEASURES: The federal government has already introduced several measures to support businesses affected by COVID-19:

INCOME TAXES: Deferring the payment of income taxes. The government is allowing all taxpayers to defer, until after August 31, 2020, the payment of income tax amounts owed on or after March 18 and before September 2020. This relief would apply to tax balances due, as well as installments, under Part I of the Income Tax Act. No interest or penalties will accumulate on these amounts during this period.

Some provincial taxes have been deferred, delayed or reduced
What you must do if employees fall ill, are absent from work or your business is unexpectedly disrupted
Economic resources for businesses
WorkSafeBC resources for employers
The BC Emergency Benefit for Workers provides a one-time $1,000 payment for people who lost income
A one-time enhancement to the climate action tax credit will be paid in July 2020 for moderate to low-income families
Employers must excuse workers for sickness without requiring a doctor’s note
Taking unpaid, job protected leave due to COVID-19

OTHER:
Covid-19 support and access to support business – how the Surrey Board of Trade is making a difference

PRIME MINISTER, Ministry of Small Business, Export Promotion and Trade, and Ministry of Innovation, Science & Economic Development: Daily calls and access to federal government connections to specific business questions: Any questions, email anita@businessinsurrey.com.

PREMIER AND FINANCE MINISTER BC ECONOMIC RECOVERY TASK FORCE: Surrey Board of Trade is a part of this task force, having a direct connection to BC Government to help you and also are looking at post-pandemic economic recovery.

CITY OF SURREY: Surrey Board of Trade is part of a weekly call with City of Surrey Pandemic Team – any feedback would be appreciated on what is happening on the ground.

COVID-19 CABINET: With over 80 business organizations in BC, the Surrey Board of Trade is a part of this cabinet identifying on the ground needs in collaboration with others.

PAYROLL SUPPORT/ROE: Surrey Board of Trade Members are eligible to receive 20% off payroll processing fees with Payworks, personalized support from a CPA-trained representative, dedicated ROE support task force, HR advisory services to keep on top of daily government announcements. Cassie Hamer at 604-460-2862 (Ext. 1130) or cassie.hamer@payworks.ca.

EMPLOYEE & OWNER BENEFIT SUPPORT: Short Term Disability Coverage, instead of EI, through the Chamber of Commerce Group Benefit Plan-COVID-19. If you have EI coverage for your employees but the business owner does not have EI, you can opt to only get short-term disability for the business owner, as there is some coverage for sickness benefits through EI. However, for many industries, if you also obtain short-term coverage for your employees you may be able to to get a reduction in the EI premiums that you pay on behalf of your employees. Compared to EI sickness benefits, short-term disability has some advantages. The maximum weekly payout amounts are higher than the EI maximums, plus in most cases the income received from short term disability insurance is tax free, where EI payouts are taxable income to the employees. As a member of the Surrey Board of Trade you have access to this plan. Contact S&F Benefits at 604-514-3347 or info@schmidtandfunk.com.